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<br />MR. VANDEMOER: You don't see any problem? <br /> <br />MR. SPARKS: Not at this time. <br /> <br />~MR. ROBBINS: I just wanted to raise the point that, in the case of <br />Nunn, they are not proposing to buy water rights. They are proposing <br />to drill new wells. It is perfectly legitimate for this board to I <br />require them to obtain the additional water rights necessary to drill . <br />those wells as a prerequisite to giving them the money.' That keeps <br />the Board out of the position of supporting a project not feasible <br />under the administrative laws of the'state. If'they cannot provide <br />augmentation water for new wells, if there is no other source of <br />augmentation on the river, I would 'suggest that Nunn may have a sig~ <br />nificant problem. I personally would 'like to see them assure the <br />Board's staff prior to the legislative session that they 'are in a <br />position to actually obtain the water that they are drilling for under <br />the priority system. <br /> <br />MR. SPARKS: I see no objection to that. But, again, we are not going <br />to start construction on any project until all the prerequisites are <br />satisfied: We don't release construction f~nds until we are satisfied <br />that the rights to the,water exist. <br /> <br />MR. ROBBINS: In the case of Limon, we appear to be approving monies <br />to -buy water rights. And if in-theH\idson and Nunn applications ,the <br />money for' that purpose were included. I"wouldh' t have any prOblem. <br />because the appearance would be that what we are approving is someone <br />purchasing existing water rights. I am a little concerned when the <br />description that the Board has received just indicates that they are <br />going to drill wells, and the testimony has indicated that they don't <br />at this time have authority to drill those wells. ' , <br /> <br />MR. SPARKS: I might add that we frequently run into prOblems with <br />these projects that we 'did not anticipate inthe feasibility report. <br />However. all of the cost, estimates in here are estimates only, based <br />upon the situation as we see it at the time the feasibility report <br />was rendered. While the amount ,of money appropriated to this board <br />is a fixed amount, the federal amounts are not so fixed. ' In almost <br />every case, we have an element of some federal money. The federal <br />people can vary the amount. They are not tied to a fixedappropria- <br />tion, as we are. Our variahle in all these cases is the other money <br />that is coming in, which we can vary then to suit the circumstances. <br />It is conceivable that we may have to purchase water rights for so:me <br />of these projects that are not included in the feasibility report. <br />If so. the variable features from the Farmers Home loans, or whatever I <br />federal agency is involved, they are variable 'enough to take care '.of <br />contingencies that we cannot accurately foresee at this time. I can <br />a'Ssure the Board that in every case, before we go ahead, we have toO <br />be assured that everything is in order before th'e construction actually <br />starts. ' <br /> <br />MR. KROEGER: Any. other comments from Mr. Wuertz? I see that -another <br />one of your :individuals has arrived. <br /> <br />-22- <br />